Coinbase’s New Perps Challenge Hyperliquid’s Throne – Is HYPE’s Bull Run Over?

Coinbase just fired a shot across Hyperliquid’s bow—launching perpetual futures that could dethrone the DeFi darling. Market whispers call it 'net bearish for HYPE,' but is this the start of a liquidity war—or just another CEX flex?

Perps showdown heats up

With zero fees and deep liquidity, Coinbase’s move targets Hyperliquid’s core advantage: trader loyalty. The CEX vs. DEX battle gets bloodier as institutions weigh anchor.

Meanwhile, degens shrug—another day, another leverage platform. After all, when has crypto ever picked just one winner? (Spoiler: Never.)

“You asked for it, we built it”

Coinbase CEO Brian Armstrong’s tweet echoed the exchange’s big leap.

The exchange will offer nano Bitcoin (0.01 BTC) and nano ethereum [ETH] (0.10 ETH) perpetual-style futures, which are fully CFTC-compliant and designed to close the long-standing domestic gap in crypto derivatives access.

The contracts won’t have fixed expiries but will include hourly Funding Rates and long-dated expirations.

The MOVE challenges offshore dominance and puts pressure on Hyperliquid, whose no-KYC, high-leverage edge Coinbase now aims to replicate—legally.

Will Coinbase eat Hyperliquid’s lunch?

Hyperliquid DEX debuted last year, but already commands $2.78 billion in BTC’s Open Interest (OI). This is the fourth largest after Binance, Bybit, and OKX. 

Source: Velo

But Coinbase’s move has elicited a mixed outlook for the DEX’s mid-term moat. According to Messari analyst Troy Harris, 

“Coinbase perps is net bearish for Hyperliquid. Given the choices of HYPE, COIN, or HOOD, I am going HOOD.”

BitMEX Founder, Arthur Hayes, also had similar reservations. In a recent interview, Hayes said that about 30K Hyperliquid users could opt for ‘easier’ Coinbase or Robinhood alternatives. 

However, others argued that Coinbase perps traders will eventually migrate to Hyperliquid, citing low fees and non-KYC. 

Source: DeFi Monk/X

Whales are watching, and they’re not waiting

Despite the mixed takes, whales’ interest in HYPE was still solid. Two institutional whales, Galaxy Digital and Manifold Trading, deposited nearly $50 million and began buying HYPE.

While sustained interest from large players could bode well for HYPE’s price prospects, the market was somewhat cautious in the short term.

Santiment data confirmed a negative-to-neutral Weighted Sentiment for HYPE since the 20th of June. Even with the whale accumulation, broader retail confidence remained fragile.

Source: Santiment

Meanwhile, CoinGlass’ 7-day Liquidation Heatmap marked $33, $35, and $39.6 as key liquidity magnets.

Source: CoinGlass

Current price action sat close to both ends of the liquidity spectrum, leaving HYPE exposed to a tug-of-war between whale strength and market hesitation.